#Canada #Vancouver #Desert Mountain Energy #helium production #Sustany Holdings

Strategic Partnership Between Desert Mountain Energy and Sustany Holdings

Desert Mountain Energy Corp. (DME) is making headlines with its recent strategic partnership with Sustany Holdings. As of April 27, 2025, the two companies have signed a non-disclosure agreement and a memorandum of understanding. This collaboration aims to develop a large data center that will not only rely on traditional grid electricity but will also harness solar energy and utilize natural gas generated through high-efficiency gas turbines. This initiative will significantly further DME's operational capabilities in Arizona and New Mexico, enhancing their natural gas and helium production.

Key Highlights of the Agreement

The construction of the new data center is expected to exceed 200 megawatts (MW), which marks a significant addition to DME's operational landscape. The agreement serves as a long-term commitment for DME, providing a reliable end user for its produced natural gas throughout the lifespan of the gas field, along with a considerable fraction of its future helium output.

In order to facilitate enhanced production levels, Desert Mountain Energy may introduce a nitrogen separation unit to achieve the stringent gas purity requirements of the data center. The company is also working on upgrading its flow lines to maximize the efficiency of its processing facilities. Notably, while the facilities are currently optimized for helium extraction, they have not reached their full production capacity, and routing all wells through the processing plant is essential to boost helium output.

Infrastructure Improvements and Operational Changes

DME plans to expand approximately 33 miles of new lines, installing larger lines to decrease pressure and augment natural gas and helium production. To carry out these upgrades effectively, certain wells and processing facilities will temporarily halt operations during specified periods. This proactive approach is part of DME’s commitment to cost-effective and eco-friendly gas processing solutions.

The Bureau of Land Management has already approved a temporary suspension of production, thereby paving the way for these essential enhancements. DME anticipates that these developments will result in increased royalties and sales tax revenues due to a reduction in lost gas volumes.

Additionally, some neighboring well operators plan similar upgrades, which may involve direct sales to end users, creating a competitive landscape for natural gas sales in the region. Despite this, DME has focused on establishing viable gas sales contracts, resisting terms that would compromise their long-term operational viability and returns for shareholders.

Future Prospects and Expansion Discussions

Conversations with Sustany Holdings also hint at potential expansions for solar facilities in the McCauley Helium Field, alongside ideas for integrating with the Southwest Power Grid in Arizona. In the meantime, DME continues its efforts to minimize operational losses while advancing projects in both Arizona and New Mexico.

CEO Robert Rohlfing is set to embark on discussions with government officials and strategic partners in the UK over the coming weeks to further explore feasibility and geophysical studies.

About Desert Mountain Energy

Desert Mountain Energy Corp. is publicly traded and focuses on the exploration and production of helium, hydrogen, and natural gas. The company is dedicated to extracting helium from various raw gas sources while ensuring environmentally sustainable and economically efficient practices. DME aims to support industries deemed crucial for renewable energy and advanced technology applications.

The recent partnership with Sustany Holdings exemplifies DME’s aggressive strategy to enhance its service offerings and operational footprints, ensuring a consistent and reliable supply of essential resources for the future of energy production.

As DME moves forward with its plans, it reflects a measurable commitment to innovation and collaboration, vital for success in today’s dynamic energy sector.